By Jessica Yun and Colin Kruger
Australia’s largest cosmetics sale is now kicking off with BWX’s receivers unveiling plans to sell the collapsed empire’s most valuable remaining brand, Sukin, as well as Andalou Naturals and Mineral Fusion, as the Commonwealth Bank attempts to claw back more than $100 million from the group.
The receivers have also formally kicked off the sales process for BWX’s majority stake in Zoe Foster Blake’s Go-To Skincare.
BWX’s receivers are poised to sell its most prized remaining brand, Sukin.Credit: Michael Dodge
“The receivers and managers expect to mandate sale advisers for the Australian business, which consists predominately of the Sukin brand, by the end of May 2023 and will commence the sale process shortly thereafter,” the receivers, led by KPMG’s David Hardy, said in a statement on Thursday.
Sukin is a natural skincare brand sold through supermarkets Coles and Woolworths as well as Priceline and Chemist Warehouse.
Beauty and cosmetics manufacturer BWX hit financial strife after forking out $89 million for a majority stake in Zoe Foster Blake’s popular Go-To Skincare brand and after tough trading conditions meant its practice of channel stuffing forced it to slash profit forecasts.
BWX collapsed last month after it lost the support of the Commonwealth Bank, which later appointed receivers to recover more than $105 million in loans. The receivers have been selling its brands and stakes in star-studded brands, including Elsa Pataky-founded Purely Byron, ever since.
KPMG has appointed advisory firm Grant Samuel as a sale adviser to find a new buyer for BWX’s 50.1 per cent stake in Go-To, which operates independently of BWX and is not in administration.
A spokesperson for Zoe Foster Blake declined to comment on whether she was considering buying back the stake. Blake founded the brand in 2004 and remains its chief creative officer.
Meanwhile, KPMG’s US team will lead the sale of Mineral Fusion and Andalou Naturals, which is sold in Priceline and Chemist Warehouse.
“We are pleased with the progress made so far in readying the US business for sale. The Mineral Fusion and Andalou brands are very strong brands, and we expect there to be significant interest in the sale process,” Hardy said.
The receivers have also made “significant steps” in stabilising local operations, normalising inventory and increasing production levels, he added.
“I want to thank our customers and suppliers for their ongoing support, as well as the BWX team who are continuing to go above and beyond in assisting the receivers and managers.”
BWX has sold two of its other brands, e-commerce platforms Nourished Life and Flora & Fauna, to a New Zealand wellness company, while Purely Byron has formally been wound up.
Nourished Life founder and entrepreneur Irene Falcone told this masthead BWX had “tarnished” the beauty retailer she founded in 2011 and is establishing a direct rival website called Sans World.
BWX’s other brands include Renew Skin Care, cosmetics manufacturer Beautiworx, and Edward Beale Hair Care.
More to come
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